Financial health is closely tied to emotional health, and institutions that recognize this connection and lead with empathy stand out as true allies in their account holders’ lives. because they are deeply integrated into the communities they serve. They are not distant or anonymous organizations; they are staffed by people who often know their account holders personally and genuinely want to help. That proximity and trust provide a foundation for easing financial stress in meaningful ways. Here are some ways to put that advantage to work. Proactive Financial Education A 2025 PYMNTS study found that 65% of U.S. adults live paycheck to paycheck, leaving little room for unexpected expenses. To address this stress, financial institutions can offer financial wellness workshops, budgeting tools, digital courses and personalized guidance to help account holders manage debt, build savings and plan ahead. They can also expand this support by incorporating digital tools such as credit monitoring, score simulators and financial management dashboards within online and mobile banking. These resources help account holders understand how day-to-day decisions affect their financial health in real time. One recent study found that 47% of users of a financial wellness platform reported lower financial stress, highlighting how education can replace anxiety with assurance. Fair and Responsible Liquidity Options When cash flow is tight, many consumers make short-term decisions that can cause long-term harm, such as turning to payday lenders, pawn shops or high-interest credit cards. One-third of those living paycheck to paycheck have skipped or partially paid a bill, risking late fees, loss of service or damaged credit. Community banks can offer a safer alternative by providing fair, transparent liquidity solutions. Services like overdraft protection and short-term, small-dollar loans provide access to much-needed funds without excessive fees or predatory terms. When these services use dynamic limits tied to an account holder’s ability to repay, they create helpful breathing room while reinforcing healthy financial habits and building trust over time. Personalized Communication and Engagement Money stress is deeply personal, and support should reflect that. Using data, analytics and segmentation, financial institutions can tailor their communication to specific behaviors and needs. They can send alerts for spending spikes, offer encouragement when savings grow or share tips when patterns suggest strain. These timely, relevant touchpoints reassure account holders that their institution is paying attention and stands ready to help. A 2025 FICO survey found that 88% of consumers consider experience just as important as a financial institution’s products and services. Personalized engagement can improve the customer experience and solidify the financial institution as a trusted partner. Normalizing Conversations About Money Stress Despite being a leading source of stress for many, money remains one of the most difficult topics to discuss. Only a little more than half of adults say they feel comfortable discussing it, and nearly half feel embarrassed sharing details about their financial situation. Scan the QR code to access CSI’s on-demand webinar exploring how community financial institutions can strengthen customer relationships and make a measurable difference. https://www.csiweb.com/ what-to-know/content-hub/ odwebinars/unlocking-financialwellness-tools-and-strategiesfor-community-banks/ Community financial institutions can play a role in shifting this mindset. By acknowledging financial stress openly and without judgment through blogs, newsletters, social media, events or webinars, they make the topic easier to approach. Honest, empathetic communication builds trust and encourages people to seek help before problems escalate. Building Account Holder Trust With Empathy Consumers today want more than low fees when choosing a bank or credit union. They want a partner they can trust, especially when stress is high. Financial health is closely tied to emotional health, and institutions that recognize this connection and lead with empathy stand out as true allies in their account holders’ lives. By pairing empathy with education, technology, meaningful services and personalized support, community institutions can honor their commitment to the people they serve, help alleviate the emotional weight of financial stress and strengthen the relationships that matter most 10 In Touch
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